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Tesla is developing its own custom AI chip, says Elon Musk
Elon Musk has revealed that Tesla is developing its own custom artificial intelligence (AI) chip to support the company’s next generation of self-driving technology.
Speaking at the Neural Information Processing Systems (NIPS) conference in Long Beach, California on Thursday night: an industry event attended by experts in the field of machine learning and computational neuroscience, Musk, joined by Tesla’s Autopilot and AI heads, was heard talking about the company’s upcoming AI chips.
“I wanted to make it clear that Tesla is serious about AI, both on the software and hardware fronts. We are developing custom AI hardware chips” said Musk, according to The Register.
The serial tech entrepreneur spoke of “Jim” and his efforts on developing custom AI hardware for Tesla. “Jim is developing specialized AI hardware that we think will be the best in the world.” said Musk. He was, of course, speaking about Jim Keller, the legendary chip engineer and former lead architect for AMD and Apple who joined Tesla in 2016 as the company’s Vice President of Autopilot Hardware. Musk, alongside Tesla’s Director of AI Andrej Karpathy, Keller, and Bloomberg Beta’s Shivon Zilis, a VC firm, spoke on a panel about AI.
Musk has long talked about his plans to achieve full autonomy in self-driving Teslas in the last year, albeit optimistic. The company dispelled rumors of a potential partnership with Global Foundaries, the parent company for chip-maker AMD, on the development of an AI self-driving chip. “Tesla has not committed to working with us on any autonomous driving technology or product,” said a Tesla spokesperson in September.
We now learn that Tesla has been developing AI hardware on its own. But as the company continues to make advancements on its Tesla Vision suite and Autopilot feature for its current Model S and Model X fleet – Tesla’s Semi truck will also include Autopilot or “convoy” technology – while pushing the industry forward on building fully autonomous vehicles, bringing development of an AI chip in house might give the company an edge over competitors that are also promising self-driving cars.
Tesla currently uses Nvidia’s hardware to power its driving-assist features. The company has plans to activate Full Self-Driving capabilities, an option for Model S and Model X buyers that promises to, one day, navigate a vehicle without human intervention.
Musk, alongside Karpathy, was captured on video by an attendee at last night’s NIPS 2017.
Elon Musk
Tesla Full Self-Driving’s newest behavior is the perfect answer to aggressive cars
According to a recent video, it now appears the suite will automatically pull over if there is a tailgater on your bumper, the most ideal solution for when a driver is riding your bumper.
Tesla Full Self-Driving appears to have a new behavior that is the perfect answer to aggressive drivers.
According to a recent video, it now appears the suite will automatically pull over if there is a tailgater on your bumper, the most ideal solution for when a driver is riding your bumper.
With FSD’s constantly-changing Speed Profiles, it seems as if this solution could help eliminate the need to tinker with driving modes from the person in the driver’s seat. This tends to be one of my biggest complaints from FSD at times.
A video posted on X shows a Tesla on Full Self-Driving pulling over to the shoulder on windy, wet roads after another car seemed to be following it quite aggressively. The car looks to have automatically sensed that the vehicle behind it was in a bit of a hurry, so FSD determined that pulling over and letting it by was the best idea:
Tesla appears to be implementing some sort of feature that will now pull over if someone is tailgating you to let the car by
Really cool feature, definitely get a lot of this from those who think they drive race cars
— TESLARATI (@Teslarati) February 26, 2026
We can see from the clip that there was no human intervention to pull over to the side, as the driver’s hands are stationary and never interfere with the turn signal stalk.
This can be used to override some of the decisions FSD makes, and is a great way to get things back on track if the semi-autonomous functionality tries to do something that is either unneeded or not included in the routing on the in-car Nav.
FSD tends to move over for faster traffic on the interstate when there are multiple lanes. On two-lane highways, it will pass slower cars using the left lane. When faster traffic is behind a Tesla on FSD, the vehicle will move back over to the right lane, the correct behavior in a scenario like this.
Perhaps one of my biggest complaints at times with Full Self-Driving, especially from version to version, is how much tinkering Tesla does with Speed Profiles. One minute, they’re suitable for driving on local roads, the next, they’re either too fast or too slow.
When they are too slow, most of us just shift up into a faster setting, but at times, even that’s not enough, see below:
What has happened to Mad Max?
At one point it was going 32 in a 35. Traffic ahead had pulled away considerably https://t.co/bjKvaMVTNX pic.twitter.com/aaZSWmLu5v
— TESLARATI (@Teslarati) January 24, 2026
There are times when it feels like it would be suitable for the car to just pull over and let the vehicle that is traveling behind pass. This, at least up until this point, it appears, was something that required human intervention.
Now, it looks like Tesla is trying to get FSD to a point where it just knows that it should probably get out of the way.
Elon Musk
Tesla Megapack powers $1.1B AI data center project in Brazil
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
Tesla’s Megapack battery systems will be deployed as part of a 400MW AI data center campus in Uberlândia, Brazil. The initiative is described as one of Latin America’s largest AI infrastructure projects.
The project is being led by RT-One, which confirmed that the facility will integrate Tesla Megapack battery energy storage systems (BESS) as part of a broader industrial alliance that includes Hitachi Energy, Siemens, ABB, HIMOINSA, and Schneider Electric. The project is backed by more than R$6 billion (approximately $1.1 billion) in private capital.
According to RT-One, the data center is designed to operate on 100% renewable energy while also reinforcing regional grid stability.
“Brazil generates abundant energy, particularly from renewable sources such as solar and wind. However, high renewable penetration can create grid stability challenges,” RT-One President Fernando Palamone noted in a post on LinkedIn. “Managing this imbalance is one of the country’s growing infrastructure priorities.”
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
“The facility will be capable of absorbing excess electricity when supply is high and providing stabilization services when the grid requires additional support. This approach enhances resilience, improves reliability, and contributes to a more efficient use of renewable generation,” Palamone added.
The model mirrors approaches used in energy-intensive regions such as California and Texas, where large battery systems help manage fluctuations tied to renewable energy generation.
The RT-One President recently visited Tesla’s Megafactory in Lathrop, California, where Megapacks are produced, as part of establishing the partnership. He thanked the Tesla team, including Marcel Dall Pai, Nicholas Reale, and Sean Jones, for supporting the collaboration in his LinkedIn post.
Elon Musk
Starlink powers Europe’s first satellite-to-phone service with O2 partnership
The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools.
Starlink is now powering Europe’s first commercial satellite-to-smartphone service, as Virgin Media O2 launches a space-based mobile data offering across the UK.
The new O2 Satellite service uses Starlink’s low-Earth orbit network to connect regular smartphones in areas without terrestrial coverage, expanding O2’s reach from 89% to 95% of Britain’s landmass.
Under the rollout, compatible Samsung devices automatically connect to Starlink satellites when users move beyond traditional mobile coverage, according to Reuters.
The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools. O2 is pricing the add-on at £3 per month.
By leveraging Starlink’s satellite infrastructure, O2 can deliver connectivity in remote and rural regions without building additional ground towers. The move represents another step in Starlink’s push beyond fixed broadband and into direct-to-device mobile services.
Virgin Media O2 chief executive Lutz Schuler shared his thoughts about the Starlink partnership. “By launching O2 Satellite, we’ve become the first operator in Europe to launch a space-based mobile data service that, overnight, has brought new mobile coverage to an area around two-thirds the size of Wales for the first time,” he said.
Satellite-based mobile connectivity is gaining traction globally. In the U.S., T-Mobile has launched a similar satellite-to-cell offering. Meanwhile, Vodafone has conducted satellite video call tests through its partnership with AST SpaceMobile last year.
For Starlink, the O2 agreement highlights how its network is increasingly being integrated into national telecom systems, enabling standard smartphones to connect directly to satellites without specialized hardware.